- Banks should use stablecoins and crypto to offer faster, cheaper payments and new services.
- Digital assets can improve banking for consumers while staying safe under proper rules.
U.S. Senator Cynthia Lummis has called on banks to stop resisting Cryptocurrencies and Stablecoins and instead start adopting them as part of their modern financial services. Speaking in the Interview aired on Fox News, she argued that digital assets can help banks to create new products at a lower cost and can improve services for customers.
Why Cynthis thinks Banks are Missing an Opportunity
Cynthia Lummis questioned why many banks are hesitant to adopt digital assets. According to her, blockchain technology is not a threat to banks, and by rejecting it, banks are missing a greater opportunity. She highlights the two main areas where banks can benefit. They are Digital asset custody and Stablecoin payments. Banks can safely hold cryptocurrencies on behalf of the customers, and she noted that the three U.S. states already allow banks to provide crypto custody services. On the other hand Stablecoins can be used as a payment method in banks, which is faster and cheaper than debit cards.
Lummis arguments were mainly focused on the benefits of the customers, and she explained that blockchain-based payments allow money to move faster and cheaper than the traditional banking system. This is particularly useful for the cross border payments, international business transactions, and Everyday digital payments. She also said that blockchain allows money to be sent directly without any middlemen.
Lummis made it clear that safety and consumer protection are essential. She said that lawmakers and regulators are working to make sure that digital assets are used responsibly. She noted that discussions are going on with the Federal Reserve, which focuses on protecting consumers, maintaining stability, and making sure new blockchain-based products meet safety standards.
Lummis framed that digital assets are the next step for finance, similar to how online payments replaced the older systems. She said that banks that adapt to blockchain-based services will be better prepared for the future.
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